A Great Midwest Bank Jumbo Loan is a home mortgage loan for those in the market to purchase or refinance a large home.
What you need to know about Jumbo Loans:
- The current “conforming” loan limit for a single-family (primary or second) home in Wisconsin is $647,200 and is set by Fannie Mae. When a mortgage goes beyond that amount, it enters the category of a Jumbo Loan.
- Like other mortgages, Jumbo Loans come in the form of both Adjustable and Fixed Rates, which are often slightly higher than their conforming counterpart.
What makes it different than a conforming mortgage?
- The market for more expensive homes is inherently riskier because of the limited number of potential buyers.
- As a result, property values are subject to greater swings, requiring more conservative underwriting requirements.
- Because of this higher risk, the average Jumbo Loan borrower typically has a better credit history, more stable income, and higher reserves (cash on hand or other assets that can be accessed, even retirement accounts) than a Conforming Loan borrower.
Great Midwest Bank Jumbo Loans:
At Great Midwest Bank, we most often use our Portfolio Loan product with an Adjustable Rate in this circumstance. It is a popular option, in part, because of the flexibility of our local underwriting requirements and, in some circumstances, a lower down payment via Private Mortgage Insurance. After closing, all of our Portfolio Loans are serviced right here in Wisconsin.
More recently, Great Midwest Bank added a Fixed Rate Jumbo Loan option. The product provides the security of a longer term fixed rate, but generally requires a higher down payment and stronger credit and income history. In some cases, two appraisals may be required.
In a situation where a borrower needs only slightly more than the $647,200 conforming loan limit, Great Midwest Bank may opt to provide a small second lien mortgage to make up the difference. Your Loan Officer can provide details.
Contact your local loan officer today to learn more about your Great Midwest Bank home loan options.